Ferguson Reports 3.6% Revenue Growth in Q1 2026, Driven by…

Event summary

Ferguson reported Q1 2026 net sales of $7.5 billion, up 3.6% YoY, with organic growth of 2.8% and acquisition growth of 0.8%.
Non-residential revenue grew 8%, offsetting a 1% decline in residential revenue due to weak construction activity.
The company completed two acquisitions in Waterworks and announced three more in HVAC and Industrial, with aggregate annualized revenue of $350 million.
Adjusted operating profit increased 8.4% YoY to $647 million, with a 8.7% adjusted operating margin.
Ferguson's net debt to adjusted EBITDA ratio improved to 1.0x, and the board authorized a $2.0 billion share repurchase program.

The big picture

Ferguson's Q1 2026 results highlight its ability to outperform in a challenging market by leveraging its scale and expertise in non-residential projects. The company's strategic focus on water infrastructure, large capital projects, and climate solutions positions it well to capitalize on long-term growth drivers. However, the broader economic uncertainty and weak residential construction activity pose risks to its near-term performance.

What we're watching

Market Differentiation: Whether Ferguson can sustain non-residential revenue growth amid broader market softness in residential construction.
Capital Allocation: The pace at which Ferguson integrates its recent and upcoming acquisitions to drive long-term value.
Governance Dynamics: The potential impact of Ferguson's review of its London Stock Exchange listing on investor sentiment and liquidity.